Factors affecting customer loyalty in bars. A case study of bars in kinondoni.
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Abstract
This study aimed at determining the factors affecting customer loyalty in bars. The specific objective for the study were to determine the influence of customer satisfaction on customer loyalty, influence of service quality, the impact of price, bar location, and bar environment on customer loyalty. The factors based on the service quality, customer satisfaction, price, bar environment and bar location, five hypotheses were tested using chi square test. A sample of 85 customers was selected using purposive sampling techniques. The study presented empirical findings basing on 85 customers of bars who responded. Descriptive statistics, with chi-square test for significance were used to present the factors. Results shows that customer satisfaction has a significance positive relationship with customer loyalty at 5% level of significance, followed by service quality at 5% level of significance, although bar environment, bar location and price show no relationship with customer satisfaction which led to customer loyalty. However there results shows that majority of the respondents are motivated to visit a bar considering factors such as bar facilities staff employees, physical design, bar location and environment. The study recommended that in order to influence customer loyalty the issue of customer satisfaction should not be ignored in the bar canters, managers and employees of bars should make sure they practice good marketing strategies in ensuring customers are satisfied which results into customer loyalty.